(Adds detail, updates shares)
May 30 Shares of Retrophin Inc jumped
as much as 31 percent on Friday, a day after the drugmaker
raised its full-year revenue forecast following a deal to market
a lucrative drug for treating a rare kidney disease.
The drug, Thiola, is one of the two FDA-approved treatments
for an inherited condition that leads to the formation of stones
in the kidney, ureter and bladder.
Retrophin acquired the U.S. marketing rights to the drug
from privately held Mission Pharmacal Co for an undisclosed sum
The company said it planned to raise the price of Thiola,
increase the number of available doses and eventually develop an
extended release version.
Thiola, currently sold for $4,000 a year per patient, will
be priced closer to rival drug penicillamine, which costs
$80,000 to $140,000, Chief Executive Martin Shkreli said on a
conference call on Friday.
Such a sudden jump in price could attract regulatory
scrutiny especially given recent insurer concern over the rising
cost of medicines.
Thiola is the preferred therapy for cystinuria as it poses a
lower risk of toxicity, Shkreli said.
While penicillamine is also used in the treatment of
Wilson's disease and rheumatoid arthritis, Thiola is only
approved for use in cystinuria.
Thiola is currently available in a 100 mg dose, which
Retrophin plans to discontinue. The company intends to launch
250 mg and 500 mg doses.
Retrophin raised its full-year revenue forecast on Thursday
to $30 million-$35 million from $20 million-$22 million.
"I believe the guidance is conservative, and I look forward
to updating it," Shkreli said.
The company also lifted its 2015 revenue forecast to $60
million-$70 million from $36 million-$41 million.
Thiola was approved in 1988 by the U.S. Food and Drug
Administration for the treatment of cystinuria, which affects
about 1 in 10,000 people, according to the National Institutes
Retrophin, which has hypertension drug Vecamyl and
metabolism treatment Chenodal in the U.S. market, is developing
a number of drugs for rare diseases including rage disorders,
Duchenne muscular dystrophy and infantile spasms.
The New York-based company's shares were up 16 percent at
$15.00. The stock was one of the top percentage gainers on the
(Reporting by Natalie Grover in Bangalore; Editing by Kirti